What is the value of a perpetual security that pays $1,200 per month forever? The...
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What is the value of a perpetual security that pays $1,200 per month forever? The EAR is 14%."
| "112,500" | ||
| "110,000" | ||
| "109,301" | ||
| "109,091" | ||
| "111,574" |
What is the value of a project that generates a cash flow of $50,000 in the first month, with the cash flows growing at 0.2% per month forever? The interest rate is 8.4%."
| "10,000,000" | ||
| "11,111,111" | ||
| "9,090,909" | ||
| "9,999,999" | ||
| "10,101,010" |
An investment generates a cash flow of $50,000 in the first month, with the cash flows growing at 0.3% per month forever. What is the monthly interest rate if the value of the investment is $7M?"
0.76%
0.88%
1.01%
1.18%
0.92%
Consider a growing perpetuity that makes annual payments and has a value of $200. The first payment of $9 will be made in a year. The interest rate is 7%. What is the expeced growth rate of the payments?
| 1.0% | ||
| 2.0% | ||
| 0.0% | ||
| 2.5% | ||
| 1.5% |
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